[Edaily Reporter Kim Kyung-eun ] SamsungHeavyIndustries(010140)is expected to report second-quarter earnings that fall short of market expectations due to the impact of performance-based bonuses and the dilution of profitability resulting from the expansion of its global operations. However, analysts suggest that a “re-rating” of the company’s value is possible as its floating data center (FDC) business emerges as a new growth driver.

On the 13th, SKSecurities maintained its “Buy” investment rating and 40,000 won target price for SamsungHeavyIndustries. The firm projected that SamsungHeavyIndustries’ consolidated revenue for the second quarter of this year would reach 3.2172 trillion won, with operating profit at 341.3 billion won. While revenue is expected to rise 19.9% year-over-year and operating profit 66.6%, the operating profit figure is estimated to fall short of the market consensus (390.2 billion won).

Han Seung-han, an analyst at SKSecurities, noted, “Top-line growth was driven by the simultaneous resumption of launches at Dock 2 and the positive impact of global operations,” but added, “This is likely due to the dilution of the company’s operating profit margin (OPM) caused by the relatively low margin rates of subcontracting in global operations, as well as the allocation of quarterly performance bonuses.”

However, the slowdown in earnings is viewed as temporary. SamsungHeavyIndustries is expected to comfortably achieve its order intake target of $13.9 billion and revenue target of 12.8 trillion won this year. In particular, the annual revenue share from orders secured in the merchant ship segment is projected to expand from 17% in 2022 to 52% in 2024–2025, which is expected to lead to improved profitability. The recent signing of a Memorandum of Understanding (MOU) with PetroVietnam for cooperation in the shipbuilding and energy sectors was also cited as a positive factor for future expansion of construction volume.

In particular, the company identified the floating data center (FDC) business as a key growth driver for the medium to long term. SamsungHeavyIndustries recently obtained conceptual design certification for a 50-megawatt (MW) FDC from the American Bureau of Shipping (ABS) and Lloyd’s Register (LR). The company has also partnered with ABB to develop power systems and signed an MOU with U.S. data center developer Mustarian (M3) to develop FDCs in the United States. Since the company has set the launch of its first commercial FDC service for the second quarter of 2028, analysts believe it is highly likely that it will secure an order contract soon to meet this deadline.

One analyst stated, “The FDC is scheduled to be built at Dock 2, which offers the highest efficiency when securing orders,” adding, “Once SamsungHeavyIndustries’ entry into the global FDC market gains momentum, its multiples could be re-rated.” The analyst further emphasized, “Given that the current valuation is not overly burdensome, this presents a preemptive buying opportunity.”